Trade and Agriculture
What’s at Stake for Alabama?
U.S. Department of Agriculture
Foreign Agricultural Service
Alabama is an important producer and exporter of agricultural products. In 2006, the State's
cash farm receipts totaled $3.6 billion. As for exports, the State's agricultural sales overseas
were estimated at $572 million in 2006. Agricultural exports help boost farm prices and
income, while supporting about 6,800 jobs both on and off the farm in food processing,
storage, and transportation. Exports remain important to Alabama's agricultural and statewide
economy. Measured as exports divided by farm cash receipts, the State's reliance on
agricultural exports was 16 percent in 2006.
Alabama's top five agricultural exports in 2006 were:
• poultry and products -- $247 million
• cotton -- $143 million
• peanuts and products -- $26 million
• wheat and products -- $24 million
feed grains and products -- $12 million
World demand for these products is increasing, but so is competition among suppliers. If
Alabama's farmers, ranchers, and food processors are to compete successfully for the export
opportunities of the 21st century, they need fair trade and more open access to growing
How Trade Agreements Benefit Alabama Agriculture
As one of the leading states in poultry production, Alabama benefited under the Uruguay
Round agreement when Korea eliminated its import quotas on frozen chicken in 1997, and
reduced its tariffs to between 18 to 20 percent by 2004. These steps supported a rise in U.S.
poultry to 120,000 tons valued at $79 million by 2002. The Philippines opened a tariff-rate
quota for poultry meat of 16,701 tons in 1998, which rose to 23,500 tons by 2004.
Under the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR)
all applied import tariffs on U.S. poultry meats that currently range between 30 and 164
percent will be eliminated over 10 to 18 years depending on the product and country. Each
country also c